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KenGen, Obama’s Power Africa ink capital, tech deal

A geothermal well at Menengai Crater. PHOTO | SULEIMAN MBATIAH
A geothermal well at Menengai Crater. PHOTO | SULEIMAN MBATIAH  

Electricity producer KenGen will enter into joint ventures with American companies for capital and technical support in the construction of new wind and geothermal power plants following a partnership deal.

KenGen, which is majority-owned by the government, Wednesday inked a deal with US President Barack Obama’s Power Africa initiative in what puts the company on course to more than double the country’s energy generation capacity.

The utility firm plans to generate additional 2,500 megawatts (MW) in 10 years at a cost of Sh900 billion ($9 billion), lifting the country’s total installed power capacity from the current 2,294 MW.

“The joint ventures are significant in bringing in capital and technical expertise,” the managing director Albert Mugo said yesterday during the signing of the pact with Power Africa-Kenya, the local arm of Mr Obama’s project.

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